Greece's Debt Crisis: A Prolonged Struggle

The Genesis of Greece's Financial Woe

The Greek government-debt crisis emerged in 2009, casting a long shadow over the country's economy and destabilizing the European Union. The crisis stemmed from a combination of factors, including reckless spending by the Greek government, a bloated public sector, and an unsustainable pension system. The global financial crisis of 2008 (known as the Great Recession) exacerbated Greece's underlying vulnerabilities.

A Decade of Turmoil

As the dust settled from the Great Recession, Greece's debt-to-GDP ratio stood at an alarming 127%, far exceeding the European Union's recommended threshold of 60%. In response, the Greek government embarked on a series of austerity measures, slashing public spending and raising taxes to appease creditors, primarily the IMF, ECB, and EU. However, these austerity measures brought widespread social unrest and economic hardship to the Greek people.